What happens if the lender fails to deliver the securities on T+1?
If the lender fails to deliver the securities on T+1, the transaction is closed-out by NSE Clearing Ltd through a financial settlement. The close-out price is taken as the higher of:
- 25% of the closing price of the security in the capital market segment of NSE on T+1 day, OR
- (The highest traded price of the security in the capital market segment of NSE from T day to T+1) minus (the closing price of the security in the capital market segment of NSE on T+1)
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